Financial Times

Making 'ecosystems' of business
By Random Access memory (RAM)
RAM is no biologist, only a half-baked economist who from time to time dabbles in the business of running business. Looking for logical explanations on why and where we must turn to, to build sensible business models to develop our individual businesses and the collective 'engine of growth', RAM thought of turning the searchlight to the much talked about concept of ecosystems.

In this day and age, all schoolchildren are sensitised to the functioning of ecosystems within their lessons and on the need to conserve our natural environment. The spill over impact of these lessons learnt by the children on us, the grown ups (or are we), cannot be underestimated. Thus, comes this optimistic attempt to seek a symbiotic semblance between ecology and business.

Why you may wonder, this sudden interest in linking biology to business? Just look at what the majority of the people said at the recently concluded elections. Most post event analysts, both local and international, now say, that there was disapproval of the economic model adopted, where the rural economy had little or no impact of the grandeur schemes developed to connect to the global village of business and commerce. What was forgotten is that the local villages had to be effectively connected with each other, while we undertook to connect ourselves to the 'Global Compact' grand designs.

Both initiatives, we know are needed. But we should not have one at the cost of the other. As one of my friends quipped with his sharp humour, attempts to run Sri Lanka by a group of 'Colombians', meaning a section of the Colombo based elite, who were thinking and acting global but were not so akin to local realities, was symptomatic of the debacle faced when confronted with seeking the approval of the people. 'Visva Kchana Kendras' or the fancy name for the Internet connectivity centres, the ICT Agency was planning to set up around the island, is but one such example.

Apart from the jawbreaker title, almost close to the 'Sarvaloka Puttuwa' used by the pundits in the past to describe my car's universal joint, the concept was to set up glittery outfits with fancy equipment. In Nepal, Internet connectivity is possible at most wayside teashops whether it is in the tourist area of Thamel and Pokara, along the way to the Everest base camp or on the remote Langtang trek. Another model at the other end of the spectrum is in operation at Cyber Jaya and Putra Jaya in Malaysia, where every residence, every business and every public office in these new townships, are provided with broadband connectivity. They all have a human face befitting the needs and the profiles of the users and not the providers.

Ecosystems, short for ecological systems, are defined as functional units that result from the interactions of abiotic, biotic and cultural components. They are known to be a combination of interacting, interrelated parts that form a unitary whole. All ecosystems are 'open' systems in the sense that energy and matter are transferred in and out. When disturbed by human and other interactions, ecosystems in most instances are known to have the ability to emerge to new levels of equilibrium adjusting itself accordingly. What they cannot withstand, in the short term, is known to be complete transformations occurring within the environment.

Now on to business, what we perhaps need to look at is how we can build systems that integrate farmers, the small entrepreneurs, artisans and artists of the so called informal sector of the economy with the so called formal sector of the economy consisting of the large agro-producers, manufactures, exporters and the agency houses. These linkages must first begin not in systems design, but in the mindsets of the movers and shakers in policy making at the business houses and their chambers and associations.

We know that donor agencies such as the Asian Development Bank and several other multi and bi-laterals have set in place systems in the past to 'create' these linkages. While funds are spent on systems design and implementation, the mindset of the dominant position of the formal sector, continues to mar the equality and mutual respect aspects of the relationship, causing systems failure.

One key lesson we can all learn from nature's design of ecosystems is that no one entity whether an amoeba or an elephant is more important than the other. Each plays an equally critical role to maintain the richness, diversity and equilibrium of the system.

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